1.) How should acquisition target be valued?

- As a stand- alone pre-acquisition play in local currency

- In reference currency terms after having incorporated the acquisition induced value-creating enhancements on both the target and the bidder

- Using multiples based on comparable firms

2.) Maersk - the Danish giant shipping and container company - is preparing a take-over bid of Chargeurs Runis (CR) - the French privately held shipping company. CR's annual earnings are projected at 550 million. The P/E ratio for international shipping companies stands at 11. The French stock market rate of return is 15.5%. Using the valuation-by-comparable what should Maersk bid be?

- 50 million

-6050 million

-550/0.15 million

- None of the above